Asia Shares Extend Relief Rally as Japan, Hong Kong Stocks Climb

(Bloomberg) -- Most Asian markets rallied after the perceived threat of a North Korean missile test at the weekend failed to materialize.

The MSCI Asia Pacific Index gained 0.6 percent as to 162.53 as of 5:09 p.m. Hong Kong time, holding at its highest level since December 2007. Electric-vehicle maker BYD Co. led gains after China said it will set a deadline to phase out the sale of cars powered by fossil fuels. Japan’s Topix had its steepest increase in more than three months as the yen weakened against the U.S. dollar. Hong Kong shares also advanced, with 40 of 50 Hang Seng Index members rising.

North Korea refrained from firing missiles on Sept. 9, the country’s founding anniversary, although warned Monday of retaliation if the United Nations Security Council approves harsher sanctions for Pyongyang conducting another nuclear test. The dollar climbed from a 32-month low as concerns about storm damage in the U.S. eased and traders unwound positions placed on speculation of a weekend missile test.

“Negative news from North Korea has been partly priced in the Asia share prices,” said Ronald Wan, chief executive at Partners Capital International Ltd. in Hong Kong. Chinese stocks may also be stable ahead of a key conference of the Communist Party, he said.

Summary

• Sensex +0.8%, BSE 100 +0.9%
  • IndusInd Is Said to Discuss $2.2 Billion Bharat Financial Deal
  • India’s Sensex Rebounds From Weekly Drop on North Korea Refrain
• Topix +1.2%, Nikkei 225 +1.4%
  • Topix Set for Biggest Daily Gain in Three Months as Yen Weakens
  • Japan Post Sale Said to Target Individuals With TV Ads
  • Japan July Core Machine Orders Rise 8% M/m; Est. +4.1%
• Hang Seng Index +1%, HSCI +1%, HSCEI +0.6%, Taiex -0.4%
  • HKEX to Consult on Backdoor Listing Rule Changes in 2018
  • Prada Heads for Biggest Loss Since 2011 After Turnaround Warning
  • Sinoma jumps as much as 23% after planning merger with CNBM
• Shanghai Composite +0.3%, Shenzhen Comp +0.8%, CSI 300 little changed
  • China Sends First Warning on Yuan Rally by Cutting Cost to Short
  • China Factory Prices Give an Unexpected Lift to Global Inflation
• Australia’s S&P/ASX 200 Index +0.7%, New Zealand’s NZX 50 little changed
  • Macquarie Shares Rise Most in Four Months on Upgraded Forecast
• Kospi +0.7%, Kospi 200 +0.8%
  • Hanwha General Falls After Announcing Plan to Issue New Shares
• Straits Times Index little changed, FTSE Bursa Malaysia KLCI +0.2%, Philippines Stock Exchange PSEi Index +0.3%, Jakarta Composite Index +0.3%, Vietnam’s VN Index -0.5%, Thailand’s SET Index +0.2%

To contact the reporter on this story: Moxy Ying in Hong Kong at yying13@bloomberg.net.

To contact the editors responsible for this story: Divya Balji at dbalji1@bloomberg.net, Margo Towie, Vivek Shankar